An investigation of cash management practices by companies listed on Nairobi Stock Exchange: a case of finance and investment segment listed companies
Yego, Philip Kipkemoi
MetadataShow full item record
The study aimed at establishing the cash management practices by Kenyan firms listed on the Nairobi Stock Exchange. A case of finance and investment segment of Nairobi Stock Exchange listed Companies. This study came at a time when several companies were facing cash crisis to service their creditors and to meet day by day expenditure on their operations, introduction of performance contracts, higher remuneration for workers poses serious management challenges to these firms. Coupled with this, the need to implement enabling technologies towards tempering optimism for accounting systems that are more useful management tools has set a solid challenge for managers of these institutions. These technologies should as well render the administrative system effective. All these issues involve an increased traffic of cash. Cash management is thus pivotal to the success of operations in these firms. The study thus sought to establish cash management techniques, the optimum level of cash holding and the purpose for which these firms hold cash. The sample size for this study was thirteen out of a listed population of fifty-five firms. Primary data were collected with the aid of a questionnaire. Descriptive statistics such as percentages, proportions and tables were used to analyze and present the findings. The study concludes that cash management is key to major investment decisions companies listed on Nairobi Stock Exchange adopts. Based on the findings, the study recommends that further research be conducted to establish whether or not cash management practices affect profitability of the firms listed on Nairobi Stock Exchange under the finance and investment segment and the extent to which cash management policy contributes to a firm's profitability.